Red Orbit  May 13  Comment 
Shayne Jacopian for redOrbit.com - @ShayneJacopian Have you ever seen a sunburned fish? What about a lizard or frog? And when was the last time you saw a snake applying SPF 30? (…) According to findings published in eLife by Oregon...
newratings.com  Apr 30  Comment 
WASHINGTON (dpa-AFX) - Home builder Standard Pacific Corp (SPF) on Thursday reported first-quarter net earnings to equity holders of $23.9 million or $0.08 per share compared with $29 million or $0.09 per share last year. Revenues for the quarter...
TheStreet.com  Apr 23  Comment 
NEW YORK (TheStreet) -- Shares of U.S. homebuilder Standard Pacific  fell 4.48% to $8.11 in afternoon trading Thursday after fellow homebuilder PulteGroup   reported a surprising 27% decline in its first-quarter profit and noted...
TheStreet.com  Feb 6  Comment 
NEW YORK (TheStreet) -- Shares of Standard Pacific Corp. are higher by 4.56% to $7.67 on heavy volume in mid-afternoon trading on Friday, after the home building company reported its 2014 fourth quarter earnings results which topped analysts'...
GenEng News  Jan 21  Comment 
The list of coffee’s beneficial attributes has grown. Over the past several years the protective effects of consuming the dark brew has been shown for vast array of aliments, from type 2 diabetes to Alzheimer’s disease.  A new study from...
Benzinga  Nov 24  Comment 
In a note released Monday, Bank of America analyst Michael Roxland downgraded shares of Standard Pacific Corp. (NYSE: SPF) from Buy to Neutral and lowered the price target from $9 to $8.50. Roxland commented, "Our thesis on SPF had centered on...
newratings.com  Oct 30  Comment 
WASHINGTON (dpa-AFX) - Home builder Standard Pacific Corp (SPF) Thursday reported third-quarter net earnings to common stockholders of $43 million or $0.14 per share compared with $44.7 million or $0.15 per share last year. Revenues for the...


Standard Pacific is a geographically diversified builder of single-family attached and detached homes. The company makes money by constructing homes within a wide range of price and sizes with an emphasis on move-up buyers. Its major markets center around California, Florida, Arizona, Texas, the Carolinas, Colorado and Nevada. Standard Pacific sales are sensitive to the continued strict lending standards and the weakened housing market.

Business Growth

Sales for Standard Pacific is split in two main categories:

  • Homebuilding represents 98.7% of total net sales.
  • Financial Services represents roughly 1.3% of total net sales.

In lieu of a demand for greater liquidity, SPF was able to secure a $210 million unsecured revolving bank credit facility.[1] This was made in expectation of large land acquisitions SPF plans to make to take in the potential upside of a recovering housing market.

Trends and Forces

Home Buyer Demand is Highly Dependent Upon Resale, Rents, and Lending

Because SPF operates in the new housing development business, the price which it may set its final sale price is highly dependent upon existing houses in the market. In particular, this existing housing demand comes about two-fold; one from resale of current homes and a second from the rental sphere. Traditionally, with high lending requirements, households are forced to rent if they cannot afford to secure adequate lending without putting down a sizable down-payment. Further with a high inventory of existing homes for sale, the housing market typically soaks up those homes before builders such as SPF may come into the playing sphere. These factors ultimately put downward pressure on its revenues.

SPF is Highly Dependent upon the California Market

With over 50% of revenues coming form California, SPF is highly dependent upon housing demand in the state. However, with the state experiencing budget shortfalls and raising taxes, these factors will continue to likely lower buyer demand for new homes in California. As an opportunity though, California markets include cities that are considered "superstar" cities, or areas that tend to see generally rising house prices such as San Francisco. In these regions, the growth in house prices will prompt a healthy increase in revenues compared to other cyclical cities such as Detroit that are tied to more cyclical companies for employment such as the Auto Makers.


As a diversified home builder, SPF is competing with a wide array of other large homebuilders such as:

  • NVR (NVR) is a diversified home builder that operates differently from the traditional scope in the fact that it does not actually purchase the land it builds upon, thereby translating to higher ROAs.
  • Lennar (LEN) is homebuilder and a provider of financial services that appeals also toward the move-up market just like SPF.
  • KB Home (KBH) is a diversified homebuilder that appeals toward the more luxury end basis of home construction.


  1. tandard Pacific Corp. Announces New Three Year $210 Million Unsecured Revolving Credit Facility
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